Recently, during a visit to the market, the editor heard a trader complain that if the company’s gross profit per year was one or two million, the money I would receive would be negative. The editor expressed surprise after hearing this, so the boss calculated the accounts for the editor, deducting various taxes, employee wages, rent and annual exhibition fees, etc. Indeed, the annual gross profit of a trading company is 1-2 hundred. Ten thousand, that is equivalent to serving the people!
Generally, the profit of gray fabric is 5%-10%, and the profit of finished fabric is 10%-20%. Although the profit of fabric is higher than that of gray fabric, the complexity is doubled. For enterprises integrating industry and trade, gray fabrics can be obtained from their own factories and only need to be dyed and finished. For pure traders, purchasing gray fabric from other factories will definitely be more expensive than buying it from their own factory, thus shrinking profits. If the market is not good, customers lower prices, payment is slow, etc., only you will know the bitterness!
Trader’s “Sandwich Biscuits” – A mute eats Coptis chinensis and can’t tell the pain!
When the market is good, gray cloth factories and dyeing factories are the most prosperous. I still remember that in the first half of last year, “bad cloth” polyester taffeta and pongee entered the market. In the “seller’s era”, cash is queued up. In sharp contrast to this are traders. Small traders do not have sufficient funds on hand, so they have to pay cash for gray cloth. In terms of dyeing factories, when the production capacity of printing and dyeing factories is limited, not only the delivery time is extended, but also the dyeing factories have to face price increases from time to time. The most critical thing is that the printing and dyeing factories have a fixed bill settlement date every month, and the dyeing fees must be If you want to clear the month, there is no such thing as arrears. The dyeing fee needs to be paid monthly, and the gray fabric needs cash. How much working capital is left in the hands of the sandwich cake trader? In addition, I have to deal with two or three phone calls a day from customers, constantly urging customers…
When the market is good, faced with price increases from weaving and dyeing factories, traders receive large The order is also in a dilemma. Large orders are usually duplicates of previous orders, so the quotations are locked. In this way, when calculating the profit, it turns out to be a loss!
This year, the textile market has plummeted. Dyeing fees have not increased, nor have gray fabrics. However, the price of fabrics on hand by traders has also shrunk. What’s even more frightening is that the number of orders placed by customers has shrunk. A trader in the Wujiang area revealed to the editor that the customers they had cooperated with all year round could place tens of millions of orders a year, but this year the order volume has been cut in half, leaving only 2-3 million! Since this year, weaving factories, traders, and clothing brands have all faced “inventory trouble.” Warehouses are full of gray fabrics and fabrics, and there is not that much demand for orders at this time.
The debt problem is very serious
People are tired but the heart is tired. When the body is tired, just rest for a while, and the heart is tired. Tiredness is fatal. In the textile industry, credit sales are common, and “getting goods on debt” has always been a common rule. Most cloth bosses said that they have been troubled by receivables to one degree or another.
The problem of arrears is closely related to the customer. Generally, for larger buyers or buyers who have cooperated for a long time, the two parties have established a high degree of trust, even if the payment time is longer. Boss Bu can also accept it. For those small-scale buyers, their own funds are tight, and the market is not good, so the payment is delayed again and again. For this type of customers, be careful not to let the money go away. If you are not careful, you may lose all the money for the goods.
“Last year we did about 10 million yuan in business, which was much less than the previous two years. The main reason is that it is too difficult to collect money. Some of the money has not been returned after three or four years, and a lot of business is afraid to do it.” A boss said helplessly.
In recent years, there have been frequent incidents in the market where money and goods have been lost, and we have encountered several bad debts that are irrecoverable. Not to mention making money, we have to lose money! Boss Bu needs to be more vigilant and keep his eyes open at this time!
Afterwords
People who work in the textile industry have been working for more than ten or twenty years. We have already taken root in this industry. Sometimes all the money we make is spent on labor, water, electricity, and rent… We make money selling cabbage, but we have no regrets. Selling cloth is not easy, but we do it and cherish it!
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